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Commercial production budget

How to build a commercial production budget.

A commercial production budget has two jobs. It wins the job, against two other bids built from the same boards. Then it becomes the number you have to deliver the job for.

Here is how producers build one, from the agency's specs to a locked bid you can spend against.

1. Read the specs and the boards

Start with what the agency has sent: the boards or script, the deliverables (lengths, versions, social cut-downs), the shoot dates or window, usage, and any must-haves such as a specific director, location or talent count. Write down every assumption you make; they become your bid notes.

2. Schedule before you budget

Days drive the budget. Work out prep, travel, shoot, and wrap days, how many locations or stages you need and whether any days are split. Every crew line and most rentals multiply by these days.

3. Build the bid section by section

  • Crew (A, B): each position's days, rate, base hours and expected overtime.
  • Prep and wrap, locations, props and wardrobe, studio (C to F).
  • Art department (G, H): labor and build costs.
  • Equipment and media (I, J).
  • Director's fees and talent (L to N): creative fee, cast, agency fees and payroll handling.
  • Travel (O) if anyone leaves town.
  • Post (Q to X) if you are bidding editorial and finishing too.

Starting from the AICP-format template means every line is already there with its standard number. Hide the lines you do not need rather than deleting them.

4. Set the markups

Fringes on payroll, then the production fee and insurance on the sections they apply to, talent agency fees, and any handling on expenses. What each one covers, and the rates the template starts from: production fee and markups. Check each against the agency's cost consultant guidelines if they have them.

5. Write the notes

Bid notes say what the number includes and what it does not: the shoot days, hours, union status, usage, number of deliverables, and contingencies such as a weather day. Good notes win arguments later. See bid notes.

6. Review, send, revise

Read the top sheet the way the agency will: is each section in proportion to the job? Send an AICP-format PDF, take the revisions, and keep each version as a snapshot so you can always show what changed.

7. Lock it and track it

When the job is awarded, lock the bid. From then on the approved numbers do not move, and every purchase order, payroll entry and petty cash envelope is posted against them. See budget vs actuals.

Questions

It depends on days, crew, talent, locations and post. A one-day studio shoot and a multi-day location job with cast are different budgets. What moves the number: commercial production cost.

Three budgets free. Every feature, no card.

Start a budget